House prices are insane

[Electric_Andy]

Developers and estatge agents getting greedier than ever. I still rent my old house out for £200/month less than others I have seen, in worse areas, in a worse state of repair, with no garage or driveway. but I can't bring myself to charge "market" rates just because everyone else is getting greedy

 

[Psamathe]

It would help but I'm not sure many councils have the money to do that anymore. I think I read more council houses were built under Thatcher than any government since. They then abandoned that model - councils building homes - and it will be a lot harder to start it up again than it would have been to keep it going. One effect of it is that there will be elderly people in council housing who would like to downsize to a flat or council sheltered accommodation but these are few and far between in most areas. The current state of the housing/renting market is one of the biggest domestic failings of successive governments over the last 40 years imo.

That Councils are not currently in a position to build themselves is easily resolved (money, being allowed to borrow, etc.) It's political decisions that could be made tomorrow.

Ian

 

[AuroraSaab]

Sure but will they want to borrow millions when they can't even fund their social care atm? Build a thousand council houses with gigantic loans that will take decades to pay back, with the rent possibly ending up being paid by housing benefit .... which is paid by local councils. Unless the funding comes from central government and is low risk for local authorities I think mass council house building is currently a non starter.

 

[BoldonLad]

How would you do that? House builders aren't doing it for fun, they are doing it for profit. Every affordable house reduces their profit. If it isn't profitable enough they just won't do it.

One thing I do think should be changed is building with segregation. Often the "affordable" housing will be built so that the owners of the expensive housing (usually flats) don't have to see, or mingle with the "affordable" owners. This just promotes division and disharmony.

Is that true of the whole Country, or, only the important bit (ie London)?

 

[BoldonLad]

Maybe enable local Councils to build houses ... for rent. Crucial thing is for people to have somewhere decent to live at a price they can afford.

Ian

There have been a few Councils who have dipped their toes in the House Building pond in recent years, it hasn't ended well (think, Nottingham, Croydon for starters).

 

[icowden]

Is that true of the whole Country, or, only the important bit (ie London)?

As far as I am aware, it happens everywhere. Obviously the balance between the "affordable" and "unaffordable" shrinks when you get to places that aren't massively overpriced.

 

[BoldonLad]

As far as I am aware, it happens everywhere. Obviously the balance between the "affordable" and "unaffordable" shrinks when you get to places that aren't massively overpriced.

You miss-understood. My query was, are flats (apartments surely) the expensive properties.

 

[icowden]

You miss-understood. My query was, are flats (apartments surely) the expensive properties.

Usually but not always. I live on what was a Barratt Homes new build site. They specifically designed the alleyways and cut throughs so that the people in the affordable housing don't have access to them.

 

[BoldonLad]

Usually but not always. I live on what was a Barratt Homes new build site. They specifically designed the alleyways and cut throughs so that the people in the affordable housing don't have access to them.

Ok, same here (except Bellway), it was you who said “usually flats”.

In our case, the “affordable” housing was there first, but, there are no “access alleys” into the “posh” bit 😊

 

[Mr Celine]

...with the rent possibly ending up being paid by housing benefit .... which is paid by local councils.

Housing benefit is paid and administered by local councils but all the expenditure comes from central government.

It's also currently being replaced for working age tenants by universal credit.

 

[tarric]

It would help but I'm not sure many councils have the money to do that anymore. I think I read more council houses were built under Thatcher than any government since. They then abandoned that model - councils building homes - and it will be a lot harder to start it up again than it would have been to keep it going. One effect of it is that there will be elderly people in council housing who would like to downsize to a flat or council sheltered accommodation but these are few and far between in most areas. The current state of the housing/renting market is one of the biggest domestic failings of successive governments over the last 40 years imo.

The opposite is true Thatchers the right to buy killed council housing. Houses had to be sold at less than it cost to build them costing councils millions, so yes they abandoned the building of council homes. In the years before the right to buy councils built around 150,000 social houses per year now it's around 1% of that 1,500, that's the main reason for the shortage we have now, had councils continued building at the same rate as before the right to buy there would be around 6,000,000 more houses in the country than now.

 

[Psamathe]

There have been a few Councils who have dipped their toes in the House Building pond in recent years, it hasn't ended well (think, Nottingham, Croydon for starters).

Deepends on reasons it didn't end well. At the moment with inadequate staffing, no money, etc., many councils are effectively bankrupt. It could be a problem but there are many options to avoid pitfalls. It's not beyond the wit of man to have public owned housing (and if it is we might as well just tidy-up and go extinct ... OK, we're trying that anyway through other means).

Ian

 

[BoldonLad]

Deepends on reasons it didn't end well. At the moment with inadequate staffing, no money, etc., many councils are effectively bankrupt. It could be a problem but there are many options to avoid pitfalls. It's not beyond the wit of man to have public owned housing (and if it is we might as well just tidy-up and go extinct ... OK, we're trying that anyway through other means).

Ian

I admire your optimism

 

[Rusty Nails]

Deepends on reasons it didn't end well. At the moment with inadequate staffing, no money, etc., many councils are effectively bankrupt. It could be a problem but there are many options to avoid pitfalls. It's not beyond the wit of man to have public owned housing (and if it is we might as well just tidy-up and go extinct ... OK, we're trying that anyway through other means).

Ian

What is the right level of public housing a society should aim for. In the UK we have a relatively high % of public housing aiui, although that is topped by a few, and a much higher % than the EU and OECD averages.

 

[Psamathe]

What is the right level of public housing a society should aim for. In the UK we have a relatively high % of public housing aiui, although that is topped by a few, and a much higher % than the EU and OECD averages.

It's a question I don't have a good answer to but depends on many factors and I'm not sure comparisons between countries are always relevant.
eg I suspect a lot would depend on tenant protections and security in the private rental market (including sub-standard properties with eg dangerous damp, poor insulation, etc.). My impression is that the UK "regulations" (or lack of) are primarily in the interests of landlords and their profitability. And even when there are regulations how easy is it for tenants to get those enforced (without being evicted).

If the private rental market is of adequate standard (housing quality, tenant security, pricing, etc.) then I would consider no good reason for Councils to get involved. If there is good quality, etc. available through social housing charities then again no need for Councils.

But my impression is that the rental situation in the UK is not working, has not been working for a long time and Governments have been unable and/or unmotivated to resolve. (Maybe the private market "works" for landlords but often not working for tenants).

Ian